By Paul A. Harris
St. Louis, May 12 - Ameristar Casinos, Inc. priced a slightly restructured $500 million issue of 9¼% five-year senior unsecured notes (B2/B+) at 97.097 to yield 10% on Wednesday, according to an informed source.
The yield came on top of yield talk while the issue price came slightly richer than the price talk of 3 to 4 points of original issue discount.
A lot of accounts came into the deal at 10%, the source said.
Pricing was moved up to Tuesday afternoon from Wednesday due to the demand that surfaced at 10%. Timing was also moved up due to the company's sensitivity to market risk.
The notes traded up 1½ points in the aftermarket, the source added.
Banc of America Securities LLC, Wachovia Securities and Deutsche Bank Securities were joint bookrunners for the Rule 144A with registration rights offer.
Call protection was increased to 2.5 years from two years. The notes become callable on Dec. 1, 2011 at 104.625.
Proceeds will be used to prepay and permanently retire the Las Vegas-based gaming and entertainment company's revolver.
| Issuer: | Ameristar Casinos, Inc.
|
| Amount: | $500 million
|
| Proceeds: | $485.485 million
|
| Maturity: | June 1, 2014
|
| Security description: | Senior unsecured notes
|
| Bookrunner: | Banc of America Securities LLC, Wachovia Securities, Deutsche Bank Securities Inc.
|
| Co-managers: | Calyon Securities, Comerica Investments
|
| Coupon: | 9¼%
|
| Price: | 97.097
|
| Yield: | 10%
|
| Spread: | 802 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until Dec. 1, 2011, then at 104.625, 102.313, par on and after Dec. 1, 2013 (call protection increased to 2.5 years from two years)
|
| Equity clawback: | 35% at 109.25 until June 1, 2011
|
| Change of control: | 101 put
|
| Trade date: | May 12
|
| Settlement date: | May 27
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 10% area with 3 to 4 points of OID
|
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